We are considering reducing the staff at one of our branches from two employees to one on Saturday mornings. However, our procedures require dual control for opening our night deposit box. With only one employee present on Saturday mornings, we would not process deposits placed in the night deposit box on Friday night, Saturday, or Sunday until Monday morning. This would not affect the business day of posting but could affect the funds available to customers over the weekend. Are there any federal or state regulations we should be aware of related to this change? Would it be acceptable to place a sign on the night deposit box stating that transactions deposited Friday night through Sunday will not be processed until the following Monday?

Feb 27, 2019

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We are not aware of any federal or state regulations applicable to delaying the processing of deposits placed in a night depository. Posting notice on a night depository of the date when deposits will be processed also is not required by federal or state law. However, we do recommend posting such a notice as a courtesy to your customers who use the night depository.

Regulation CC requires that a bank notify consumer account holders of changes to its availability policy as to when funds deposited in an account are available for withdrawal. However, under Regulation CC, funds placed in a night depository are not considered deposited until the day on which the deposit is removed from such facility and is available for processing. Although your Friday night deposits previously processed on Saturday will now be processed on Monday, the timeframe between when the funds are considered deposited and made available will not change. Accordingly, we do not believe your bank is required to send notice of a delay in the processing of night deposits.

Additionally, neither Illinois nor federal law requires your bank to have a sign at your night depository regarding the processing of deposits. The Regulation CC funds availability notice requirements apply only to places where bank employees receive deposits. Regulation CC’s official comments clarify that this notice is not required to be posted at night depository locations. Nonetheless, it may be advisable to post such a notice at your night depository locations so that your customers are aware of when their deposits will be processed.

We also recommend that you review your customer account agreements to determine if your bank has any notice obligations with respect to changes in the processing of night deposits.

For resources related to our guidance, please see:

Regulation CC, 12 CFR 229.18(e) (“A bank shall send a notice to holders of consumer accounts at least 30 days before implementing a change to the bank’s availability policy regarding such accounts, except that a change that expedites the availability of funds may be disclosed not later than 30 days after implementation.”)

Regulation CC, 12 CFR 229.16(a) (“To meet the requirements of a specific availability policy disclosure under §§229.17 and 229.18(d), a bank shall provide a disclosure describing the bank’s policy as to when funds deposited in an account are available for withdrawal. The disclosure must reflect the policy followed by the bank in most cases. A bank may impose longer delays on a case-by-case basis or by invoking one of the exceptions in §229.13, provided this is reflected in the disclosure.”)

Regulation CC, 12 CFR 229.19(a)(3) (“Funds deposited to a night depository, lock box, or similar facility are considered deposited on the day on which the deposit is removed from such facility and is available for processing by the depositary bank; . . .”)

Regulation CC, 12 CFR 229.18(b) (“A bank shall post in a conspicuous place in each location where its employees receive deposits to consumer accounts a notice that sets forth the time periods applicable to the availability of funds deposited in a consumer account.”)

Regulation CC, Official Interpretations, Paragraph 18(b), Comment 1 (“The notice is not required at any drive-through teller windows nor is it required at night depository locations, or at locations where consumer deposits are not accepted.”)

Regulation CC, Official Interpretations, Paragraph 19(a), Comment 4(a) (“In addition to deposits at staffed facilities, at ATMs, and by mail, funds may be deposited at a facility such as a night depository or a lock box. A night depository is a receptacle for receipt of deposits, typically used by corporate depositors when the branch is closed. Funds deposited at a night depository are considered deposited on the banking day the deposit is removed, and the contents of the deposit are accessible to the depositary bank for processing. For example, some businesses deposit their funds in a locked bag at the night depository late in the evening, and return to the bank the following day to open the bag. Other depositors may have an agreement with their bank that the deposit bag must be opened under the dual control of the bank and the depositor. In these cases, the funds are considered deposited when the customer returns to the bank and opens the deposit bag.”)